Key Takeaways
- Book Value Per Share (BVPS) = (Total Assets - Total Liabilities) / Shares Outstanding
- A stock trading below BVPS may be undervalued (P/B ratio less than 1)
- BVPS is most useful for asset-heavy industries like banking and manufacturing
- Increasing BVPS over time indicates growing shareholder equity
- Compare BVPS with market price to assess investment opportunities
About the Book Value Per Share Calculator
The Book Value Per Share (BVPS) Calculator is a comprehensive online tool designed to help you calculate the intrinsic value of a company's stock based on its balance sheet. Whether you're an investor, analyst, or student, this free calculator provides accurate results instantly to support your financial analysis.
Understanding the Calculation
BVPS = (Total Assets - Total Liabilities) / Shares Outstanding
Book value per share represents the theoretical amount each shareholder would receive if a company were liquidated. It's calculated by taking the company's total equity (assets minus liabilities) and dividing it by the number of outstanding shares.
How to Use This Calculator
- Enter the company's Total Assets (found on the balance sheet)
- Enter the company's Total Liabilities (also on the balance sheet)
- Enter the number of Shares Outstanding
- Click "Calculate" to see your results
- Use the "Reset" button to clear all fields and start over
Key Features
- Free to use with no registration required
- Mobile-friendly responsive design
- Instant calculations with real-time results
- Accurate formulas based on industry standards
- Easy to embed on your website
- No downloads or installations needed
When to Use BVPS Analysis
Book value per share is particularly useful for:
- Value Investing: Identifying potentially undervalued stocks when market price is below BVPS
- Financial Health Assessment: Evaluating a company's asset base relative to its debts
- Comparative Analysis: Comparing similar companies within the same industry
- Historical Tracking: Monitoring how a company's equity per share changes over time
Limitations of BVPS
While BVPS is a valuable metric, it has some limitations:
- Does not account for intangible assets like brand value, patents, or goodwill
- Uses historical cost rather than current market value of assets
- Less meaningful for technology or service companies with few physical assets
- Should be used alongside other valuation metrics for complete analysis
Frequently Asked Questions
A "good" BVPS depends on the industry and company. Generally, if a stock's market price is below its BVPS (P/B ratio less than 1), it may indicate the stock is undervalued. However, a very low P/B could also signal underlying problems. Compare with industry peers and consider other metrics.
BVPS is based on the company's accounting records (balance sheet), representing what shareholders would theoretically receive in a liquidation. Market price is determined by supply and demand in the stock market and includes future expectations, sentiment, and intangible value.
Total Assets and Total Liabilities are found on a company's balance sheet, available in annual reports (10-K) or quarterly reports (10-Q). Shares Outstanding is typically found in the same reports or on financial websites like Yahoo Finance or Google Finance.
Yes, BVPS can be negative when a company's total liabilities exceed its total assets. This indicates negative shareholder equity, which is a serious financial concern and may suggest the company is insolvent or has accumulated significant losses.
Yes, this calculator is completely free to use with no hidden charges or registration requirements. You can also embed it on your own website using the widget code provided.
Additional Resources
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